Stellantis to idle Chrysler Pacifica production in wake of chip shortage

Byron Hurd
·1 min read

Stellantis will idle production of the Chrysler Pacifica at its Windsor, Ontario, facility for several weeks due to the ongoing global chip shortage. The facility will be idled starting Monday.

"Stellantis continues to work closely with our suppliers to mitigate the manufacturing impacts caused by the various supply chain issues facing our industry," a Stellantis spokesperson told Autoblog. "Due to the unprecedented global microchip shortage, production at the Windsor Assembly Plant will be down beginning next week through mid April."

Automotive production shutdowns continue to mount amid a global microchip shortage brought on by spiking consumer demand across countless industries, production slowdowns due to pandemic restrictions, and untimely natural and man-made disasters. The shortage has put a great deal of pressure on chip producers, especially in Asia.

Taiwan’s central role in producing chips has shot into focus during the COVID-19 pandemic, with soaring demand for laptops, tablets and other equipment to power the work-from-home trend benefiting firms like Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker. Washington has increasingly viewed tech-powerhouse democracy as a key part of its strategy to shift global supply chains away from China, especially when it comes to technology and chip companies.

Foreign governments and companies have also beseeched Taiwan to help resolve a shortage of auto chips which have idled factories around the world. U.S. companies are not standing still either. This week, processor giant Intel announced a $20 billion plan to expand its advanced chip manufacturing capacity in Arizona.

This article includes reporting by Reuters.